And don't forget that inflation and fiscal drag somewhat mask the effects of this. The low paid worker losing £15/week has had his personal allowance increased, as has everyone else, but it is not a real increase, it is merely in line with inflation.
Wages do not necessarily go up at exactly the same time, on April 6th, but it should be taken into account.
If Gordo was in charge in 1940, the scene at Downing Street would have been along the lines:
"I've invited Mr Hitler to Downing Street because he has offered Europe the chance to ratify a peace Treaty. I won't be boycotting this Treaty, nor will I be going to Lisbon for the signing ceremony. Instead I will meet with the Land Girls in the morning and the Bevin Boys in the afternoon before joining the European head of state, Mr Hitler later in the evening. Ich bin unbestimmt"
Wat,
Present PTO: £5,435
Desirable PTO: £12,000
Cost in lost tax revenues (a repugnant way of stating this - Tom)/£1000: £6.5Bn
Cost to get to desirable PTO: £43Bn
I wonder precisely how much the tax credits system costs to run? Considering it is essentially giving us back our own money?
THAT is a better question to ask - any idea where I can find out the cost of the tax credits system? Could've sworn you posted on this.
I think it's quite clear that the 2007 tax announcements were made in the anticipation of an Autumn election. The plan was that Gordon Brown would have been safely elected before any of the proles realised that they were going to get hammered for more tax. Shame that Brown bottled it then. What goes around comes around. What a sad dickhead the PM is.
"I wonder precisely how much the tax credits system costs to run?"
See House of Commons Committee of Public Accounts Tax Credits and PAYE Eight Report of Session 2007-08.
Cheers UKL;
"2. The Department has increased the numbers of staff employed in managing the scheme
from 7,300 in 2003–04 to 10,120 in 2006–07. Over the same period the administrative cost
has risen from £406 million to £587 million." (Page 9 of the report)
So that £587 million increasing by £181 million - or the further polishing of a turd as a like to think of it.
So:
Tax credit payments per year: ~£16.25 billion a year (based on £65 billion/ 4 years)
Total cost: £16.25 + 0.6 billion = ~£17 billion in payments and administering the tax credit system.
Shortfall to get desireable PTO: £43 - 17 billion = £26 billion
Now,
remember that with a larger PTO more people will prefer to enter the workforce to earn a better crust in lower paid jobs; this means falls in welfare recipient numbers and thus the need to run the system and fund it. Combine that with the potential to benefits to home life and stress levels, lower crime due to increased employment and less fraud in the system as a whole...£26 billion isn't that large a figure to meet.
Making Bush’s tax cuts permanent won’t help the U.S. economy. They would cost taxpayers $4.3 trillion over the next ten years; Bush has proposed no measures to pay for this. Furthermore, they would increase the after-tax incomes of households with incomes above $1 million by an average of 7.5 percent, compared to a 2.3 percent increase middle-income households and 0.5 percent for lowest-income households.
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San Roger
Did you see it? One more time? You won't get faked out here!http://SelectWealthSystem.com/?t=wc
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